Rising home prices and high mortgage rates may have put many Americans’ home-buying dreams on hold. But a wealth of bargain hotspots are popping up across the country.
A new report from the National Association of Realtors (NAR) shows that there are 15 cities where home prices have fallen outright this year.
Among them are neighborhoods in New York, Texas and Florida.
These areas are at odds with a national trend that has seen the average price of a single-family home increase 5 percent year-over-year to an average of $389,400.
At the same time, mortgage rates have risen above 7 percent, meaning buyers are paying more than $900 per month for a standard home than if they had purchased two years ago.
New York’s Elmira saw the biggest decline of any U.S. neighborhood, with properties falling to $135,800 in the first three months of 2024. In the photo: Elmira
The city is surrounded by rolling hills and rivers and has a population of 26,700. Pictured: The Christmas House store in a Queen Anne Victorian home in Elmira
According to the NAR, potential newcomers to the area would need to earn $34,424 to qualify for a mortgage with a 20 percent down payment. Pictured: A three-bedroom home for sale in Elmira for $95,900
Once the famous home of author Mark Twain, the area is located in Chemung County and is best known for its rich culture, arts, and historical sites. Pictured: Twain’s octagonal study, built on the grounds of Quarry Farm in Elmira
NAR chief economist Lawrence Yun said, “Amazingly, more than 90 percent of the nation’s metropolitan areas experienced home price growth despite the highest mortgage rates in two decades.
‘In the current market, rising prices are the direct result of the housing supply being insufficient to meet full demand.’
Only 15 cities saw their prices drop in the first quarter of the year compared to the same period in 2023, the NAR said.
New York’s Elmira saw the highest decline of any U.S. neighborhood, with properties falling to $135,800 in the first three months of 2024. This represented a decrease of 15.1 percent from $160,000 last year.
Elmira was followed by San Antonio, Texas (pictured), where home values fell 4.6 percent over the past year
South Bend, IN (pictured) also made the list, with the median home price falling 1.6 percent to $180,000
A three-bedroom, one-bathroom home in South Bend is currently available on Redfin for $159,900
Once the famous home of author Mark Twain, the area is located in Chemung County and is best known for its rich culture, arts, and historical sites.
The city is surrounded by rolling hills and rivers and has a population of 26,700.
According to the NAR, potential newcomers to the area would need to earn $34,424 to qualify for a mortgage with a 20 percent down payment.
Elmira was followed by San Antonio, Texas, where home values fell 4.6 percent over the past year.
The drop is likely an overdue price correction after San Antonio became one of the hottest housing markets to emerge from the pandemic.
White-collar workers moved to the area en masse after the shift to remote work freed them from their offices in San Francisco and New York.
The median home price in San Antonio fell to $305,800 in the first three months of 2024, compared to $320,500 in the same period last year.
In Shreveport, LA home prices (pictured) have fallen 0.9 percent since last year, data show
A 2,589-foot property in Shreveport is currently listed on Redfin for $250,000
The median price of homes in Peoria, Illinois (pictured) is now $127,200
It means a buyer now needs an income of $77,516 to qualify for a home with a 20 percent down payment.
Meanwhile, three neighborhoods in Florida were on the list. Cape Coral saw its median home price drop 4.4 percent, from $415,000, compared to $434,000 in the same period the year before.
Crestview and Panama City also saw similar declines. Other neighborhoods included: Boulder, CO, Salem, OR, South Bend, IN, Logan, UT, Baton Rouge, LA, Peoria, IL, Shreveport, LA, Myrtle Beach, SC, Austin, TX and Little Rock, AK.
| Neighbourhood | Average house price | Change from year to year |
|---|---|---|
| Elmira, New York | $135,800 | -15.10% |
| San Antonio, Texas | $305,800 | -4.60% |
| Cape Coral, Florida | $415,000 | -4.40% |
| Panama City, Florida | $351,000 | -3.80% |
| Boulder, Colo | $822,400 | -1.70% |
| Salem, Ore | $446,000 | -1.70% |
| South Bend, Indiana | $180,000 | -1.60% |
| Logan, UT | $436,100 | -1.30% |
| Baton Rouge, Louisiana | $260,000 | -1.10% |
| Peoria, Illinois | $127,200 | -1.10% |
| Shreveport, Louisiana | $213,600 | -0.90% |
| Myrtle Beach, South Carolina | $366,100 | -0.60% |
| Austin, Texas | $466,700 | -0.30% |
| Crestview, Florida | $399,000 | -0.20% |
| Little Rock, Arkansas | $202,800 | -0.10% |